Caffeine can enhance athletic performance by increasing alertness and improving endurance. It works by stimulating the central nervous system, which can lead to decreased perception of effort and fatigue. Studies have shown that caffeine may delay exhaustion during prolonged or intense exercise, making it a popular ergogenic aid among athletes. However, individual tolerance to caffeine varies, so it's important for athletes to understand their own responses and consume it judiciously to reap its benefits without negative side effects.